MLP K-3 info

[ce55]

 There is a problem with turbo tax and MLP's. My K-1's have line 16 checked even though there is no K-3 attached when it states it is. It another place, the K-1 says the K-3 info will come in August. Turbo tax does not take this into account and it results in errors...............

[Mike9241]

the IRS has waived k-3 reporting for 2021.  the problem comes about if that k-3 reports foreign tax credits. there really isn't a way to claim those credits without the form. however, in many cases, there will be no FTC. your options are to file by 4/18/2022 and amend if there is FTC or file an extension and wait for the partnership to provide the k-3 info. To file now uncheck the k-3 box on the Turbotax k-1 form.

[HelenC12]

For some taxpayers, the IRS has announced that most K2/K3 reporting for 2021 can be delayed until the 2022 tax return. If your K-1 does not report foreign activities for Schedule K-3, you can uncheck the box (14 on 1120S, 16 for 1065) and e-file now. 

However, if your K-1 does report foreign activities, you are required to include Schedule K-3. You have the option to uncheck the box, e-file now, and amend your return later. Or you can file an extension and check back later in the year to see if Schedule K-3 is available. 

Please note that the issuance of a K2/K3 is not a Turbo Tax issue, it is a IRS issue. According to the IRS, these are the release dates for these forms, based on type of Business Entity. Even after the IRS form is released, it must be integrated into the software, which can take a few days. 

Form 1065            March 20, 2022
Form 1120-S           Mid-June 2022
Form 8865             January 2023For more info, see this IRS link.

Source: PatriciaV

[kros]

I'd like to know if TurboTax will provide K-3 functionality and support for users who either:

a> file an extension, or

b> file now and amend after IRS releases the K-3 for Form 1120S this summer.

[PatriciaV]

Yes, TurboTax will integrate Schedule K-3 as each version is released by the IRS. If you file an extension now, or plan to file an amended return later, revisit your return a week or so after the release date listed above to see if Schedule K-3 is available.

[BrentV2]

You state: “However, if your K-1 does report foreign activities”

is this just box 21, “Foreign taxes paid or accrued” from the K-1 or are there other things that are considered foreign activities?

If no foreign activities do I just uncheck the box and continue or would I have to amend later?

[PatriciaV]

Depending on the source of Schedule K-1/K-3, you may be able to complete your entries now.

Schedule K-3 is primarily designed to report Foreign Activities. But if your K-3 has no entries in any column that mentions "foreign source" or "country code," you may not have foreign activities to report.

If you do uncheck the box and e-file now without the Schedule K-3 info, be sure to check back with TurboTax either after you receive your refund or June 30, 2022, to see if you can amend your return to include that info.